The number of first-time buyers is estimated to have gone past the 400,000 mark for the first time since the financial crisis, according to new analysis from Yorkshire Building Society.

Despite the uncertainties generated by the third lockdown in early 2021, the society has estimated the number of first-time buyer transactions reached 408,379 during the year, a 35% increase on 2020’s figure of 303,000.

Furthermore, the Yorkshire suggested that first-time buyers now represent 50% of all house purchases with a mortgage, a level up from 36% in 2007.

The previous first-time buyer peak was in 2002 when 531,800 took their first step on to the housing ladder, while Yorkshire’s findings showed that 2006 was the last time the figure reached its current level, at 400,900. This year’s figures are broadly double the numbers immediately after the financial crisis, when they hovered around 200,000 between 2008 and 2012.

Falling unemployment, low borrowing costs and an increased number of low deposit mortgage deals have been key drivers of the current demand, the Yorkshire suggested.

“The performance of the first-timed buyer market in 2021 has been extraordinary, particularly against the backdrop of uncertainties caused by the lockdown in the early months of the year,” commented Yorkshire Building Society strategic economist, Nitesh Patel.

“Whilst first-time buyers don’t pay stamp duty on prices up to £300,000, new buyers looking to buy up to £500,000 would have benefited.

“In the near-term housing demand will continue to exceed supply, however with prices at an elevated level in comparison to local earnings, this should dampen activity. Therefore, it’s unlikely that we will continue to see first-time buyer numbers at this level in 2022 and beyond.”

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